Surge Energy (SGY) AI Stock Analysis

• Market Cap: C$474.59M
• Dividend Yield: 10.58%
• Average Volume (3M): 568.36K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.08
• Revenue Growth: -2.37%
• EPS Growth: -421.59%
• Country: CA
• Employees: 83
• Sector: Energy
• Sector Strength: 47
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.53
• Shares Outstanding: 99,702,760
• 10 Day Avg. Volume: 337,481
• 30 Day Avg. Volume: 568,360
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$8.00
• Price Target Upside: 68.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Surge Energy's overall stock score reflects its financial struggles with negative profitability, balanced by robust cash flow and shareholder returns. Technical indicators suggest caution, while a high dividend yield provides some support. The company's strategic focus on generating cash flow and rewarding shareholders positively impacts its market positioning.

Positive Factors

Operational Performance

Quarterly production exceeded consensus expectations, showing strong operational performance.

Profitability

Profitability is supported by a good reserve report, which should convince more investors of the upside.

Negative Factors

Capital Utilization

For every dollar spent, management added $0.68 in value, showing efficient capital utilization.

Debt Management

The company's net debt is 32% of PDP value, indicating a manageable debt level relative to its asset value.

Surge Energy Business Overview & Revenue Model

Company Description

Surge Energy Inc. (SGY) is a Canadian oil and gas exploration and production company primarily engaged in the acquisition, development, and production of oil and natural gas reserves in Western Canada. The company focuses on light and medium-grade crude oil and operates a diverse portfolio of high-quality assets, including several core areas with strong production potential.

How the Company Makes Money

Surge Energy generates revenue primarily through the exploration, development, and production of oil and natural gas. The company's key revenue streams include the sale of crude oil, natural gas, and natural gas liquids. Surge Energy operates in core areas with substantial reserves, allowing for efficient extraction and production. Additionally, the company may engage in strategic partnerships or joint ventures to enhance operational efficiency and expand its production capabilities. Market factors such as commodity prices, production volumes, and operational efficiencies significantly influence the company's earnings.

Surge Energy Financial Statement Overview

Summary

Surge Energy shows a mixed financial performance with revenue growth but profitability challenges as indicated by negative net income. The balance sheet is stable with moderate leverage, while the cash flow statement highlights strong operating cash flow despite declining free cash flow. The company needs to address profitability issues to improve its financial health.

Income Statement

Surge Energy's income statement reveals some challenges, with a negative net income of -$53.72 million for the latest year. The net profit margin is negative, reflecting losses despite a gross profit margin of approximately 53.64%. Revenue growth is observed in recent years, moving from $558.64 million to $665.30 million, indicating a positive trend. However, the absence of EBIT highlights operational challenges.

Balance Sheet

The balance sheet shows moderate leverage with a debt-to-equity ratio of 0.31, which is relatively stable. Stockholders' equity has decreased from $843.98 million to $738.51 million, indicating a decrease in shareholder wealth. The equity ratio stands at 54.05%, suggesting a reasonable portion of the company is financed by equity rather than debt.

Cash Flow

Cash flow analysis shows a robust operating cash flow of $278.65 million for the latest year, with free cash flow slightly declining from $84.57 million to $83.54 million. The operating cash flow to net income ratio is strong, but the free cash flow growth rate is negative, posing potential concerns for future liquidity.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
665.29M	558.64M	734.47M	414.64M	215.82M
	Gross Profit
356.90M	348.63M	464.61M	243.96M	86.28M
	EBIT
0.00	320.70M	264.21M	102.05M	-42.76M
	EBITDA
153.94M	307.51M	340.70M	542.12M	-569.70M
	Net Income Common Stockholders
-53.72M	15.75M	231.72M	407.61M	-747.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.59M	0.00	-28.80M	-31.06M	-40.79M
	Total Assets
1.37B	1.48B	1.55B	1.28B	707.96M
	Total Debt
232.12M	282.18M	347.92M	337.06M	405.60M
	Net Debt
224.53M	282.18M	376.72M	368.12M	446.39M
	Total Liabilities
627.64M	636.79M	711.75M	762.06M	774.18M
	Stockholders Equity
738.51M	843.98M	838.32M	513.38M	-66.22M
Cash Flow		Free Cash Flow
83.54M	84.57M	106.18M	-3.30M	19.42M
	Operating Cash Flow
278.65M	266.14M	276.13M	100.48M	72.19M
	Investing Cash Flow
-153.00M	-177.56M	-332.27M	-16.00M	-42.67M
	Financing Cash Flow
-118.05M	-88.58M	56.15M	-84.48M	-29.52M

Surge Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SGY, the sentiment is Negative. The current price of 4.76 is below the 20-day moving average (MA) of 4.86, below the 50-day MA of 5.28, and below the 200-day MA of 5.63, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 37.81 is Neutral, neither overbought nor oversold. The STOCH value of 5.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:SGY.

Surge Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TNZ	67 Neutral	C$415.54M	187.11	-8.18%	―	-3.79%	-128.77%
TAL	66 Neutral	C$503.91M	3.30	22.59%	15.14%	18.35%	―
SDE	62 Neutral	$542.12M	13.70	7.68%	―	-54.93%	-94.86%
Sector *	56 Neutral	$6.99B	3.76	-4.38%	5.90%	-0.24%	-48.46%
CEI	55 Neutral	C$452.37M	―	-5.23%	―	113.34%	-11.26%
SGY	52 Neutral	C$474.59M	―	-6.80%	10.58%	-2.37%	-421.59%
OBE	50 Neutral	$424.42M	5.64	-12.89%	―	11.92%	-304.98%

Surge Energy Corporate Events

Surge Energy Announces May 2025 Dividend

Surge Energy Inc. has announced a cash dividend of $0.043333 per share to be paid on May 15, 2025, for shareholders of record on April 30, 2025, reflecting the company’s commitment to enhancing shareholder returns. This announcement underscores Surge Energy’s strategic focus on generating free cash flow and leveraging high-quality oil reservoirs, which may positively impact its market positioning and stakeholder confidence.

Spark’s Take on TSE:SGY Stock

According to Spark, TipRanks’ AI Analyst, TSE:SGY is a Neutral.

Surge Energy’s overall score reflects its financial struggles with negative profitability, balanced by robust cash flow and shareholder returns. Technical indicators suggest caution, while high dividend yield and positive corporate events provide some support.

To see Spark’s full report on TSE:SGY stock, click here.

Surge Energy Announces April 2025 Dividend

Surge Energy Inc. has announced a cash dividend of $0.043333 per share, to be paid on April 15, 2025, for shareholders of record on March 31, 2025. This dividend reflects the company’s ongoing strategy to generate free cash flow and enhance shareholder returns, reinforcing its position in the oil industry.

Surge Energy Exceeds 2024 Production Targets and Boosts Shareholder Returns

Surge Energy Inc. reported strong financial and operational results for the fourth quarter and full year 2024, with production exceeding expectations and significant cash flow generation. Despite a decline in crude oil prices, the company increased its adjusted funds flow due to higher production and cost savings from new debt financing. Surge returned $19.4 million to shareholders in Q4 through dividends and share buybacks, and generated $278.6 million in cash flow from operations for the year, reflecting a 5% increase from 2023. The company’s strategic focus on core areas and financial discipline positions it well in the market.

Surge Energy Declares February Dividend for Shareholders

Surge Energy Inc. has announced a cash dividend of $0.043333 per share, to be paid on March 17, 2025, for shareholders of record on February 28, 2025. This decision reflects the company’s commitment to enhancing shareholder value by distributing returns generated from its oil production activities. The dividend is recognized as an eligible dividend under the Income Tax Act of Canada, indicating its compliance with tax regulations and its potential benefit to investors.